Morgan Creek founders: time to buy crypto, according to institutional investors

27 Nov, 2018 | Updated: 27 Nov, 2018
by Alberto Arnaldo
Morgan Creek founders: time to buy crypto, according to institutional investors

Anthony Pompliano and Mark Yusko, founders of Morgan Creek Capital Management, shared their views about institutional investors, price movements and the future of crypto. They did so at the Consensus: Invest 2018 forum, which took place today in New York.

A well-known personality in the Twitter crypto space currently boasting 173,000 followers, Pompliano was bearish but nonetheless right when he warned on CNN just a few days ago about the chance of Bitcoin falling down to the 3,000 – 3,500 USD range, as we reported. Today he was sending a much more positive message, together with his partner Mark Yusko at a digital assets forum.

Yusko recommended not trying to find the real bottom in Bitcoin, which he called "a distressed asset", meaning that it has lost 70% or more of its value over the last 12 months.

"You have to buy on the way down as there will be very few trades done at the real bottom. If you buy on the way up, you will miss returns". Thus, when having a clear knowledge of the product and setting a satisfactory entry level, Yusko is not afraid to recommend what other investors would call “catching a falling knife”.

As further evidence to sustain his views, the founder of Morgan Creek stated that during the last 3 bear markets, Bitcoin has normally retraced from the bottom around 540 days before the next halving, which would have just been last weekend.

Regarding the much-awaited institutional investments, both partners were very optimistic. Pompliano stated that institutions always buy OTC, which they are doing right now, and thus their entry on the market might be quieter than expected. “They won´t post a 15 million buy order on Coinbase or Binance so they prefer the privacy of OTC markets”. This comes with a transparence debate attached. 

@Pomp shared some relevant insights, from his asset manager position. “Investors are showing more interest today due to entry prices being low. Institutionals like to buy on sale.” Their discipline and lack of time pressure when compared to retail investors is allowing them to better plan their entry on this market, he believes.

Both experts agreed that the bottom must be very close, but that does not matter for institutional investors who come in the market with a long-term view.

According to Mark Yusko, betting against human nature when investing is a very valuable skill. “People buy what´s hot and sell what´s not: institutions do the opposite, and that is why they outperform. Investment is the only sector of the economy where people run away when things are on sale”.

Yusko had further considerations to share regarding the long-term panorama. Citing several technological cycles, such as those of smartphones or microprocessors, he believes that 2024 will be the start of the age of the Trust net, or the Internet of value. And cryptocurrency will be a central part of this digital ecosystem.

Watch the whole interview by Coindesk on Periscope.

Read more: Morgan Creek: fiat currencies are going to be replaced by cryptocurrenciesMorgan Creek CEO is bullish on Ethereum

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